kentucky incremental cost_0
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MonthMortgageIncrease
MonthlyEnergy Savings
Cu u vC s /B f
1 $154.78 $28.00 $126.78
2 $3.35 $28.00 $102.13
3 $3.35 $28.00 $77.48
4 $3.35 $28.00 $52.83
5 $3.35 $28.00 $28.18
6 $3.35 $28.00 $3.53
7 $3.35 $28.00 $21.128 $3.35 $28.00 $45.77
9 $3.35 $28.00 $70.42 10 $3.35 $28.00 $95.07
11 $3.35 $28.00 $119.72
12 $3.35 $28.00 $144.37
13 $3.35 $28.00 $169.02
14 $3.35 $28.00 $193.67
15 $3.35 $28.00 $218.32
16 $3.35 $28.00 $242.97
17 $3.35 $28.00 $267.62
18 $3.35 $28.00 $292.27
2009 INTERNATIONAL ENERGY CONSERVATION C
FOR NEW HOMES IN
KENTUCKY
One o the major barriers to energy code adoption across the country is the concern that newcodes will add to the purchase price and potential buyers will not be able to a ord the homesthey want. In Kentucky, upgrading homes to the 2009 International Energy ConservationCode will actually reduce out-o -pocket expenses or homeowners – paying o their initialinvestment in a matter o months.
For the average new home, BCAP estimates the costs o the new code will add a total o $774in construction costs—an increase o only 0.3%. When this amount is rolled into the averagemortgage, real costs to homebuyers will mean a down payment increase o $154.78, and$3.35 extra on monthly mortgage bills.
These added mortgage costs will be o set, however, by monthly energy savings o $28.00,helping homebuyers pay o their initial investment in only seven months. A ter breakingeven in month seven, the home will return buyers a pro t o $25 per month— or a totalreturn o $300 every year. This return on investment is graphed below and presented as abalance sheet at right.
Cumulative BeneftMonthly Bene t: +$25Pro t a ter Year 1: +$144
Energy Code Payback for Kentucky Single Family Homes
Monthly MortgageIncrease: $3
Monthly EnergySavings: $28
Down Payment
Increase: $155
-$100
0
1 72 8 93 4 10 11 125 6
$100
$200
-$200Month
This model assumes an average sale price of $267,451 for a2,400 square foot home. The mortgage is conserva vely set at30 years, with 20% down and the current average na onwideinterest rate of 5.05%. With a lower down payment—such as10% down—consumers will break even on their investmenteven sooner.
Break Even
$ 2 5 pr of t ever y mont h
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Homes are the biggest investment we make—and everyone deserves a home that meets national minimum energy efciency standards. While it’s truethat homeowners can always improve the efciency o their homes, it is ar more cost-e ective to upgrade building components during construction,putting in better windows or swapping out one grade o insulation or a better one. Here’s what buyers get with the 2009 IECC:
For the ull Incremental Cost Analysis study, please visit bcap-ocean.org
Climate Zone 4u- actor: .4 a .35 window
insulation
r-value: 4/13 a 10/13 basement
2009 INTERNATIONAL ENERGY CONSERVATION C
L gh g:$50
Duct Sealing andT s g: $350
Window UpgradesClimate Zone 4: $162
I su Upgr d sClimate Zone 4 : $211
Payback Period
7 months
2-y r Pr f
$440.17
A u E rgy R duc
18%
5-y r Pr f
$1,327.57
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